Deutsche Bank predicts more aggressive RBA rate cut in May as Trump tariff threat looms

Chief economist Phil O'Donaghoe says global shock' from protectionist US trade policy justifies more aggressive move from Reserve Bank

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Deutsche Bank says the Reserve Bank of Australia will follow the script from previous crises and deliver a double rate cut when it next meets in May, as Donald Trump's threats of even higher tariffs on China added to fears of a looming global trade war.

Financial markets and economists were in agreement the RBA would lower the cash rate from 4.1% to 3.85% in five weeks' time, saying the decision is locked in" after the US president's liberation day" trade on 2 April sent financial markets tumbling late last week.

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